Apr 26 2005
The Canadian Home Builders' Association (CHBA) today welcomed Housing Minister Joe Fontana's announcement of enhancements to mortgage insurance provided by Canada Mortgage and Housing Corporation (CMHC).
Minister Fontana announced that CMHC is lowering mortgage loan insurance premiums by 15 per cent for first-time buyers with a five per cent down payment.
CMHC also reduced premiums by 15 per cent in 2003. Today's announcement included a full waiver of premiums for rental housing projects funded under the federal Affordable Housing Initiative.
CHBA President David Wassmansdorf said further lowering of mortgage insurance premiums will help more potential first-time buyers to realize their dream of homeownership. This, in turn, will free up more rental units, relieving pressure in markets with tight vacancy rates, particularly for modest rental units. Mr. Wasmassdorf said the waiver of premiums for rental housing projects will contribute to the viability of projects for those in greatest housing need.
"These enhancements, together with the minister's recent announcements making rent supplements eligible for funding, gives us confidence that a tool-box approach to federal housing policy is taking shape," he said. Mr. Wassmansdorf said the CHBA looks forward to another enhancement announced by Mr. Fontana - the introduction in the fall of homeowner protection against title-related risks. Mr. Wassmansdorf said the enhancements will help to allow governments at all levels to focus their resources on those in greatest need, particularly those with special needs.
"Today's announcement establishes a stronger basis for public-private co-operation by enhancing the capacity of both governments and industry to meet the housing aspirations of Canadians."
David Wassmansdorf, President of the Canadian Home Builders' Association, is the President of Passport Homes Limited of Burlington, Ontario. CHBA is the national voice of the residential construction industry, representing more than 7,000 member firms across the country. Membership comprises new home builders, renovators, developers, trade contractors, building material manufacturers and suppliers, lenders and other professionals in the housing sector.